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New data from the Chartered Institute of Personnel and
Development (CIPD) shows that the proportion of HR professionals
seeking advice on how to make staff redundant barely changed
between the first and second quarters of 2009, suggesting
that redundancies are set to continue at a high rate into
the second half of the year.
An analysis of around 15,000 calls made to the CIPD’s
legal helpline each quarter - released as part of the CIPD’s
ongoing ‘RedundancyWatch’ series - finds that
the proportion of enquiries related to redundancy fell by
only a single percentage point between Q1 (19%) and Q2 (18%).
This compares with 12% for the second quarter of 2008;
itself at that time a very high figure in comparison with
previous years which the CIPD correctly identified as a
leading indicator of the avalanche of redundancies that
subsequently hit the jobs market.
Dr John Philpott, the CIPD’s chief economist and
public policy director, cautions against drawing conclusions
about the extent to which the current recession is different
to previous recessions.
“Our CIPD Helpline data offer little comfort that
there will be any significant let up in the redundancy rate
in the next few months, though we remain hopeful that the
first quarter will prove to have been the worst for redundancies
in this recession and that the situation will start to look
better by the end of the year.
“There is considerable encouraging survey and anecdotal
evidence of co-operation between employers and staff to
seek alternatives to redundancy in the current recession.
However, looked at from a macroeconomic perspective there
is insufficient data to enable a firm conclusion to be drawn
on whether this recession has resulted in proportionately
fewer redundancies than previous recessions.
"Moreover, with 300,000 redundancies recorded in the
first quarter alone and, as our helpline data suggest, more
on the way throughout the remainder of the year, one should
probably avoid putting too positive a spin on the impact
of this recession on the workplace.”
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